Assume two people live in the same neighborhood, the same size ...

[nenivikky]

Assume two people live in the same neighborhood, the same size house and earn identical incomes. Both are unmarried without children. How might one of them actually be poorer than the other?
 
  What will be an ideal response?

Question 2

If the Federal Reserve chooses to fight high unemployment with expansionary monetary policy and firms and consumers expect this policy to increase inflation, which of the following would you expect to see?
 
  A) an upward shift of the short-run Phillips curve
  B) a downward shift of the short-run Phillips curve
  C) a decrease in the long-run aggregate supply curve
  D) Both B and C are correct answers.

[jackie]

Answer to Question 1

Poverty is not measured strictly based on income alone. There may be other factors that make one of them poorer than the other. One might be the amount of human capital that one person has that the other does not, like education or training. Another might be the amount of assets each has or the lack of good health. There are a myriad of reasons why one of them may be poorer than the other even though they make identical incomes.

Answer to Question 2

A